Money Math

Greeks Are Everywhere

The option greeks everyone starts with are delta and gamma. Delta is the sensitivity of the option price with respect…

4 years ago

The Gamma Of Levered ETFs

Levered ETFs use derivatives to amplify the return of an underlying index. Here's a list of 2x levered ETFs. For…

4 years ago

Moontower on Gamma

The first option greek people learn after delta is gamma. Recall that delta represents how much an option's price changes…

4 years ago

Can Your Manager Solve Betting Games With Known Solutions?

https://twitter.com/10kdiver/status/1514241744350507013?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1514241744350507013%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fmoontowermeta.com%2Fmoontower-145%2F One of the best threads I’ve seen in a while. It’s important because it shows how betting strategies vary…

4 years ago

If You Make Money Every Day, You’re Not Maximizing

If You Make Money Every Day, You're Not Maximizing This is an expression I heard early in my trading days.…

4 years ago

From CAPM To Hedging

Let's start with a question from Twitter: https://twitter.com/patrick_oshag/status/1499558162222964736?s=20&t=yfSn1AmZuv13r098g5F9SQ This is a provocative question. Patrick was clever to disallow Berkshire. In…

4 years ago

There’s Gold In Them Thar Tails: Part 1

If you were accepted to a selective college or job in the 90s, have you ever wondered if you'd get…

4 years ago

Solving A Compounding Riddle With Black-Scholes

A few weeks ago I was getting on an airplane armed with a paper and pen, ready to solve the…

5 years ago

A Cleaner Dashboard: Z-Scores Instead Of Price Changes

Most investors or traders' dashboards includes a watchlist with the field "percentage price change". Perhaps you have several fields for…

5 years ago

What The Widowmaker Can Teach Us About Trade Prospecting And Fool’s Gold

We're going to go on a little ride to talk about trade prospecting. We'll use the natural gas futures and…

5 years ago